Reasons why differences between public and private sector objectives are important include:

• Means of Funding: Public sector entities are financed largely from public resources resulting from taxes, levies, and other public monies, whereas private sector entities are financed through capital contributions of owners such as shares. This distinction is important as it highlights the collective ownership of public entities by citizens without equity interest, contrasting with private ownership based on equity interest.
• Accountability Structures: Public sector entities are accountable to citizens through Parliament, while private entities are accountable to shareholders through the board of directors. This difference is crucial as it dictates the governance and accountability mechanisms in place, affecting transparency and oversight.
• Nature of Goods and Services: Public sector entities provide public goods and services that are non-excludable and non-divisible, operating in a monopolistic market. In contrast, private sector entities provide private goods that are rivalry, divisible, and discriminatory, operating in a competitive market. Understanding this distinction helps in recognizing the different economic and social roles each sector plays.
• Regulatory Environment: Public sector entities are established by specific enactments of Parliament, while private sector entities are governed by general commercial enactments and other industry-specific regulations. This difference underscores the varying legal and regulatory frameworks that govern the operations of public and private entities, impacting their management and operational strategies.